The Philippines has officially broken ground on a record-setting renewable energy venture, the Terra Solar project, which is set to become the world’s largest integrated solar and battery storage facility. The nation’s Department of Energy (DOE) confirmed that development is now active across a vast 3,500-hectare site spanning the provinces of Nueva Ecija and Bulacan on the island of Luzon.
A Global Benchmark as Construction Starts on 3.5 GW Terra Solar in the Philippines
Spearheaded by a consortium including Terra Solar Philippines, Inc. (TSPI), Meralco PowerGen Corporation (MGEN), and SP New Energy Corporation (SPNEC), the project boasts a planned capacity of 3.5 gigawatts (GW) of solar photovoltaic generation paired with a massive 4.5 gigawatt-hour (GWh) battery energy storage system (BESS). This ambitious initiative, with an estimated investment of around $4 billion, aims to redefine the scale of green energy infrastructure globally.
To deliver a project of this magnitude, the consortium has enlisted major international partners. China Energy Engineering Group has been awarded the engineering, procurement, and construction (EPC) contract, while Jacobs is providing engineering services for the development, which will utilize over five million solar panels.
Powering the Nation After Construction Starts on 3.5 GW Terra Solar in the Philippines
Upon completion, the Terra Solar facility is expected to generate approximately 5 terawatt-hours (TWh) of clean electricity annually. This output is substantial enough to power an estimated 2.4 million Filipino households and displace about 4.3 million tonnes of carbon dioxide emissions each year.
The project is a critical component of the Philippines’ strategy to increase its renewable energy share to 35% by 2030 and 50% by 2040. Hailing it as a transformative initiative, Philippines President Marcos Jr. stated, “This landmark project will put our country on the map as a leader in renewable energy. The Terra Solar power project is designed to address two critical challenges of our time: the surging demand for electricity and the pressing need to shift to renewable and sustainable sources of energy.”
Securing Energy Supply as Construction Starts on 3.5 GW Terra Solar in the Philippines
A key off-taker for the project is Meralco, which has secured 850 MW of mid-merit power through a 20-year supply agreement. The delivery is scheduled in two tranches, with an initial 600 MW to come online by February 2026, followed by the remaining 250 MW by February 2027.
Meralco Chairman and CEO Manuel Pangilinan emphasized the project’s broader message. “We are making a statement that the Philippines is not only keeping pace with the global energy transition but also expressing our intention… to lead the migration from thermal to renewables,” he said. “This is all showing the world what Filipinos can achieve when the public and private sectors work together with focus and urgency.”
Sources
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